Exactly ten years ago, the Plenum of the Supreme Arbitration Court took a landmark ruling and, since then, companies have been losing court battles with the authorities on charges of undue tax benefits. A study of 24,788 court rulings by the Russian site Glavbukh has confirmed this.

Over the next three years the Ministry of Finance is planning to raise budget revenues by almost 2.5 trillion rubles. Increasing taxes is currently "just an idea for discussion." Raising taxes by one percent would bring in 170 to 324 billion rubles.

Prior to 2004, the Federal Migration Service (FMS) was a part of the Ministry of Internal Affairs (MVD). It has been an independent entity only since 2004, when it took over the passport/visa services and migration departments of the MVD. Thus, after its absorption by the MVD, the FMS will likely continue to exist in more or less the same form, but now as a part of the Main Directorate for Migration Affairs (GUVM).

On 23.06.2016, Federal Law №. 184-F3, “On the Ratification of the Treaty Concerning Amendments to the Agreement between the Government of the Russian Federation and the Government of the Republic of Singapore on the Abolition of Double Taxation and the Prevention of Evasion of Income Tax” was signed.

A Company challenged tax obligations under Article 123 of the Tax Code of the Russian Federation because the appropriate paperwork confirming the Company's permanent domicile in the Republic of Cyprus, with whom the Russian Federation has an agreement regulating tax liability, was absent at the time when payment was made to the foreign company. Because of this, the tax authorities argued, in accordance with Article 312 of the Tax Code, the Company's dividends should have been taxed at a rate of 15%, as established in item 3, subitem 3 of Article 284 of the Tax Code. The tax should have been withheld and transferred to the national budget.

If, during the fiscal period, a foreign employee becomes a Russian tax resident and this status will not change before the end of the year. PIT paid at 30% can be accounted against the 13% PIT rate applicable for tax residents.

A 13% tax rate applies to the average wage amount granted to a Highly Qualified Specialist (HQS) for the period of annual vacation leave, as well as to the payment of the balance to the full salary amount for the vacation days.

Administrative sanctions have been revised for residents who fail to return to Russia in due time funds paid to non-residents for goods or services, including data and intellectual property rights, that were not delivered and not received in Russia.

On February 16, 2016, the Russian State Duma, after a third reading, approved into law draft bill # 638178-6, which mandates pre-trial dispute resolution procedures as well as appeals to the court of first cassation prior to appealing to the Supreme Court of the Russian Federation.

Federal Law #32-ФЗ “On the Introduction of Changes to Parts 1 and 2 of the Tax Code of the Russian Federation (in regards to taxation of profits of controlled foreign corporations and foreign organizations)” from February 15, 2016, introduced following amendments:

Letter of the Ministry of Finance # ГД-2-14/64@ from January 22, 2016, explains procedures for how foreigners and stateless persons can obtain an Individual Taxpayer Number (hereafter – ITN) in Russia.